Shopping around tool for petrol could save us $75m every year
Allowing SA motorists to shop around using in-car apps with real-time fuel pricing could save $75m every year.
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South Australian motorists could save between $30 million and $75 million every year if given access to real-time fuel prices on their mobile phones.
The RAA has appealed to a SA Productivity Commission inquiry to recommend the State Government keep an election promise to collect all fuel prices and make them available to motorists in real time.
In its submission to the commission inquiry into the scheme, the RAA has cited a study by the Australian Competition and Consumer Commission showing massive savings to motorists by increased competition. Direct access to bowser prices at nearby stations would increase competition, the RAA argues.
At its best, the $75 million saving would mean $300 a year for a family car running on unleaded petrol.
The RAA submission states; “The ACCC has estimated that closing the fuel price information gap for motorists could result in annual savings between $30-$75m a year for Adelaide motorists’’.
“Other jurisdictions that have a real-time fuel pricing model include NSW, Northern Territory and Queensland, and Western Australia has a price locking mechanism along with a government website that publishes prices.’’
The RAA has 750,000 members statewide.
RAA spokesman Mark Borlace said access to real-time information on mobile phones was essential for Adelaide motorists because of the extremes of the fluctuating price cycle. “In these cycles, prices go down for a period and are then followed by a sharp increase back up,’’ he said.
“If motorists do not have adequate information to understand and anticipate these cycles, they can fail to take advantage of lower prices at the bottom of the cycle.”
Mr Borlace said he was confident the State Government would make good on its promise to implement the scheme, and motorists should view the current Productivity Commission inquiry as a way to find out which system used interstate would be the best.
“The wording of the State Government request to the commission to investigate suggests they are to find out which system would be best to use, so we are confident,’’ he said.
But the innovation is opposed by Informed Sources, which already operates the private sector MotorMouth app, which allows motorists 30 free price checks each week.
In its submission to the Productivity Commission MotorMouth states: “Four states/territories in Australia have introduced regulated transparency and in each instance, there has been no evidence to suggest these schemes have reduced fuel prices or volatility”.